1964_ESTATE_DUTY_ORDINANCE — Page 26

1983 Ed.]

Estate Duty

[CAP. 111

13. (1) In determining the value of an estate for the purpose of estate duty, allowance shall be made for reasonable funeral expenses incurred in the Colony not exceeding-

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(a) in the case of persons dying before 1 January 1963, $1,000 or 24 per cent of the ascertained value of the estate, which- ever is the smaller;

(b) in the case of persons dying on or after 1 January 1963 but before 1 April 1972, $2,000 or 24 per cent of the ascertained value of the estate, whichever is the smaller;

(c) in the case of persons dying on or after 1 April 1972 but before the commencement of the Estate Duty (Amend- ment) Ordinance 1977, $5,000 or 24 per cent of the ascer- tained value of the estate, whichever is the smaller;

(d) in the case of persons dying on or after the commencement of the Estate Duty (Amendment) Ordinance 1977, $10,000, and for debts and incumbrances but an allowance shall not be made--

(1) for debts incurred by the deceased and incumbrances created by a disposition made by the deceased, unless such debts or incumbrances were incurred or created bona fide for full consideration for money or money's worth wholly for the deceased's own use and benefit and take effect out of his interest; nor

(ii) for any debt in respect whereof there is a right to reimburse- ment from any other estate or person unless such reimbur- sement cannot be obtained; nor

(iii) more than once for the same debt or incumbrance changed

upon different portions of the estate,

and any debt or incumbrance for which an allowance is made shall be deducted from the value of the property liable thereto. placed, 31 of 1977, s. 3)

(Re-

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(2) Any allowance which but for this subsection would be made under subsection (1) for a debt incurred by the deceased as mentioned in paragraph (i) of that subsection, or for an incum- brance created by a disposition made by the deceased, as therein mentioned shall be subject to abatement to an extent proportionate to the value of any of the consideration given therefor which consisted of-

(a) property derived from the deceased; or

(b) consideration not being such property as aforesaid, but given by any person who was at any time entitled to, or amongst whose resources there was at any time included, any property derived from the deceased:

Provided that if, where the whole or a part of the consideration given consisted of such consideration as is mentioned in para- graph (b) of this subsection, it is proved to the satisfaction of the

Value of property; allowance for

25

debts and funeral

expenses:

31/90510

exclusion of certain debts, etc.. from deduction in valuing for estate duty: 1939 c. 41. s. 3)